Because of the small print, which is only now being revealed, thousands could be facing a catastrophic rise of up to 6 percent in their council tax bills next year.
Rishi Sunak stated in his Budget, that the town halls can raise the levy to 3 percent in April to partially pay for social assistance.
It has been revealed that even if the local authorities do not increase their council tax in full, this will allow them to transfer this right to next year.
It means some town halls – believed to be around 36 – will be able to add up to 3 per cent on top of the 3 per cent announced by the Chancellor.
Millions could be facing council tax increases of up to 6 percent in the next fiscal year due to tiny print, which only recently came to light. File photo
Rishi Sunak stated in his Budget, that the town halls can raise the levy to 3 percent in April to partially pay for social assistance
Levelling Up Secretary Michael Gove has also announced that police authorities will be able to increase their share of council tax bills by £10, and some fire brigades by £5.
All of this could see average Band D council tax bills soar by more than £100 in a year – with many areas breaching £2,000 for the first time.
This is in addition to the 1.25 percentage points increase in National Insurance which pays for NHS and social services, which came into force in April.
Last night Harry Fone, of the TaxPayers’ Alliance campaign group, said: ‘Another inflation-busting council tax hike will decimate many households’ finances…
‘Town hall bosses must get a grip, ramp up efficiency and keep tax rises to an absolute minimum.’
Current inflation is 5.1%. In April this year, the average Band D council tax bill in England was £1,898 – up £81 on 2020.
Sunak stated in his Budget that town halls will be able add 2 percent next year to the local budget without the need for a local referendum and another 1% to social services. If all areas do this, it could see half of districts imposing council tax bills of £2,000 a year.
A document published by Michael Gove outlined the Government’s proposed ‘council tax referendum principles’
However, it is now clear that these increases may be higher than expected: four to five percent in certain areas and even six percent overall.
A document published by Mr Gove outlined the Government’s proposed ‘council tax referendum principles’ – the rules by which town halls can avoid having to hold a local vote if they put up bills too high.
As well as the 3 per cent announced in the Budget, it said there would be an ‘ability to add any unused parts of the 3 per cent adult social care precept flexibility available in 2021/22’.
There are believed to be four councils that could have 3% from last year and 32 others which could use 2% or less.
Police and crime commissioners will also be able to add £10, while the eight lowest-charging fire authorities will be able to add £5.
The Department for Levelling Up said it has given an additional £3.5billion to help councils. A spokesman added: ‘Local people will continue to have the final say on council tax with the ability to veto excessive rises.’